Unit 1.2 · Economic Methodology and the Evolution of Economic Thought
Monetarist / New Classical Counter-Revolution (Late 20th Century)
AO2
Syllabus Requirement
Outlines Friedman’s monetarism, rational expectations and the renewed focus on market efficiency.
Assessment Objectives
AO2Application and Analysis
Summary
The monetarist and new classical counter-revolution (NCCR) emerged in the late twentieth century as a response to Keynesian economics. Monetarists emphasize the importance of monetary policy in managing economic stability, while the NCCR advocates for supply-side policies, privatization, and deregulation to promote economic growth.